The Stern review, a UK government report, suggests that the cost of climate change will be enormous if we do not take strong global action now to reduce greenhouse gas emissions.

The review, led by Sir Nicholas Stern former World Bank chief
economist, estimates that the cost of climate change will be equivalent
to losing at least 5 % of global gross national product (GDP) each
year, if strong action is not taken. If a wider range of risks and
impacts is taken into account, the estimates of damage could rise to 20
% of GDP or more. The cost of reducing greenhouse gas emissions to
avoid the worst impacts of climate change can be limited to around 1%
of global GDP each year with effective, immediate action.

The EEA supports Stern’s view that action on climate change will not
only cost but will also create significant business opportunities, as
new markets are created in low-carbon energy technologies and other
low-carbon goods and services.

The EEA also supports the Stern report views that:

Three policy elements are required for an effective global
response:

The pricing of carbon, implemented through tax, trading or
regulation

Policy to support innovation and the deployment of low-carbon
technologies

Action removing barriers to energy efficiency

An international consensus on long-term goals and a global
framework for action is also needed. Such a framework should include:
widespread emissions trading, more investment and cooperation in
research and development, action to reduce deforestation and measures
to support adaptation.